You are an auditor on the Monastiraki Limited (Monastiraki) engagement for the financial year ending 30 June 2017. Monastiraki is an Australian multinational manufacturer and retailer of pharmaceutical products. It is nearing the end of June and you are in the process of updating the Monastiraki audit plan for the upcoming year-end audit. The following is an extract you have obtained from Monastiraki's latest trial balance:

2017 2016 h $m (unaudited) sm (audited) " ' am Current assets Cash 30.8 35.2 (13%) Trade receivables 83.3 80.5 3% Non-current assets Property, plant and equipment 125.1 113.2 11% Intangible assets1 230.8 232.0 (1%) Liabilities Contingent liability (legal) 3.0 - - Non-current iiobiiities Employee benefit liabilities 13.2 12.5 6% 1 Intangible assets includes goodwill and the fair value of brands. In addition to the above, you have also obtained the following information: o In April 2017, the Australian Competition and Consumer Commission (ACCC) commenced action against Monastiraki in the Federal Court under the Australian Consumer Law. The ACCC alleged that Monastiraki has engaged in misleading or deceptive conduct by making representations that several products under its signature Profiren pain relief range were formulated to specifically treat a particular type of pain, when this was not the case as each product contained the same active ingredient used to treat a variety of pain conditions and is no more effective at a specific pain-type. The ACCC is seeking a large penalty in excess of $5 million as a deterrence to misleading conduct by large companies. Given the significance of this issue, the independent advice you have obtained indicates that the ACCC has a strong case against Monastiraki. I Monastiraki discovered in May 2017 that it had been systematically underpaying employee's superannuation entitlements since 2012. This failure has been noted to potentially affect thousands of current and former employees. A consulting firm has been recruited to review the amount of unpaid superannuation contributions. This review is expected to take another two to three months to finalise. The latest estimate of the underpayment is $8 million. Monastiraki's management has apologised to all affected staff for this error and reassured them that all amounts plus interested owed will be repaid in the coming months. [iii) PRIMARY (i) EXPLANATION OF AUDIT RISK (1.5 marks each] (ii) KEY ACCOUNT [0.5 mark each) ASSERTION (iv) SUBSTANTIVE TEST OF DETAIL (1 mark each) (1 mark each) Page 4 of 18 (1) EXPLANATION OF AUDIT RISK [1.5 marks each] (II) KEY ACCOUNT (lil) PRIMARY [0.5 mark each) ASSERTION (IV) SUBSTANTIVE TEST OF DETAIL (1 mark each) (1 mark each)